National Bank of Gandhara

Central Bank of Gandhara
مصرف الغانذارا المركزي

Headquarters of the CBG in Rhea
Headquarters	Rhea, Gandhara
Established	10 September 1965
Governor	Hisham Melhem
Central bank of	Gandhara
Currency	Gandhari dinar GAD (ISO 4217)
Bank rate	4.60%

The Central Bank of Gandhara (Arabic: مصرف الغانذارا المركزي) is the central bank of the Arab Republic of Gandhara. It was established in September 1965 and is entirely government owned. Its headquarters are located in Rhea.

The role of the bank is to promote the economic and financial well-being of Gandhara. The bank is responsible for the issue of the national currency and as such it sets the monetary policy, holds the currency reserves, and manages the exchange rate.

History

In 1885, the Netherlands Trading Society opened a branche in Rhea, the Gandhari Hollandi Bank, which acted as a de facto central bank. It kept the Emirate's gold reserves and received oil revenues on behalf of the Gandhari government. The Gandhari Hollandi Bank handed over its responsibilities to the Gandhari Monetary Agency, the first state owned Gandhari bank that was established in 1927 by the government of Gandhara.

In September 1965, the Gandhari government established the Central Bank of Gandhara (CBG) and separated all central banking responsibilities from the Gandhari Monetary Agency and assigned them to the newly formed central bank. The bank was founded as a body corporate that does not have shareholders and is owned by the Gandhari government. The responsibilities of the central bank have been defined in the Monetary and Banking Law of Gandhara.

Building

The head office of the Central Bank of Gandhara is located at the Farabi Boulevard, a boulevard in the north of Rhea. The head office is a 74 metre high building, named the CBG Tower. The construction of the building was finished in July 2005.

Responsibilities

The main tasks of the Central Bank of Gandhara are the following:

• to act as a State Bank;
• to promote the economic and financial well-being of Gandhara;
• to control the issue of banknotes and coins of the national currency;
• to manage the monetary policy of the country;
• to regulate the exchange rate between the national currency and other currencies, and to supervise its observance;
• to manage the official reserves of Gandhara.

See also

• Gandhari dinar